Don't blame delays for drilling job cuts
Contrary to a story in The Daily Star, the financial difficulties of Norse Energy Corp. and resulting job cuts have little to do with "repeated delays" in permitting horizontal drilling of Marcellus Shale, but instead results from their failure to profit from drilling of Herkimer Sandstone.
Norse has long (and as recently as last year) promoted itself as "a Herkimer exploration, development and production company with upside potential in Marcellus and Utica Shales."
As well it should, having drilled over a hundred wells in sandstone over the last decade. Unfortunately, Norse has never figured how to make this pay. Even using 3D seismic imaging to target locations, the first five wells drilled in 2010/2011 were again unprofitable. Short of cash, Norse was forced to end their Herkimer drilling program last summer.
This program racked up tens of millions of dollars in debt, which Norse had gone to great lengths to pay off: sold Medina wells in western New York; sold Brazilian offshore fields; sold a pipeline and marketing company in Chenango; sold 210,000,000 share of stock; sold a partnership in its drilling program; negotiated a debt-for-equity swap; and sold land and royalty interests in Chenango. Now Norse is being sued for $17,650,000 by its partner. All this has hurt its stock price, which has plunged from $7.50 two years ago to $0.50 today.
Norse has decided to 'go all in' and bet that wells in the Marcellus will pay off, but this is a gamble with long odds. The closest such profitable well is way down in Pennsylvania, and the production there continues to drive down the price of gas to around $3 Mcf. Indeed, Gastem USA has shifted its interest here from shales to sandstones.
Brian Brock
Franklin
Thank you for making our daughter happy
I am writing this letter because I feel that I need to say thank you, but I am not sure who to say it to. I got a phone call from Kmart telling me that someone had paid off my Christmas layaway. I had read about this happening in other places but never thought it would make it to Sidney.
My husband and I had been worried about how we were going to pay for our daughter's Christmas, and were very surprised when we got the call. It was nice to know that there are still good people in this world willing to help out a stranger.
We did pay it forward because we thought that is what we should do and we helped out a friend. So, whoever you are that paid off our layaway, thank you for making it a very Merry Christmas for our daughter. We will never forget you.
Christina Graham
Sidney Center
To the person(s) who stole my lighted angel
To the person(s) who stole the lighted angel from my front porch on Spruce Street on the night of Dec. 30. I can only hope that some of that light rubs off on you and that you turn away from such petty, senseless and hurtful acts.
Jacquie Kendall
Oneonta
